Byrnes Company accumulates the following data concerning a mixed cost, using units produced as the activity level.
|
Units Produced
|
Total Cost
|
|
March
|
9,800
|
$14,740
|
|
April
|
8,500
|
13,250
|
|
May
|
7,000
|
11,100
|
|
June
|
7,600
|
12,000
|
|
July
|
8,100
|
12,460
|
(a) Compute the variable and fixed cost elements using the high-low method.
(b) Estimate the total cost if the company produces 6,000 units.